Pensioners taking advantage of their property wealth are gifting over £39,350 to their family, according to analysis from leading over-55s retirement specialist Key Retirement
Its data shows over one in five (21 per cent) retired homeowners are accessing the money in their homes to treat their children and grandchildren with the money predominantly being used to help children improve their long-term finances.
More than two-fifths (44 per cent) of those unlocking equity in their home to pass on to children are helping out to the tune of £20,000, a generous 18 per cent are paying out over £50,000 while 6 per cent gift more than £100,000 to their loved ones.
£24,780 goes towards giving grandchildren a helping hand
Financial support for children includes helping them get a foot on the property ladder with £33,350 contributed on average towards house deposits. Other popular reasons include buying cars, family weddings and starting new businesses, with around £6,000 being spent on cars and £11,000 going towards family weddings. And the generosity doesn’t stop there – an average of £24,780 goes towards giving grandchildren a helping hand
Key says the money raised through equity release is seen by many as the best early inheritance that they can give, and one which can have a dramatic effect on their families' longer-term financial wellbeing.
Dean Mirfin at KeyRetirement.com, said: "Attitudes to inheritance are changing as people recognise the many benefits of using property wealth to help their family and friends while they are still alive. By taking advantage of the tax-free benefits of equity release many pensioners can control how the money is used as well as see the immediate benefits of the gift they are giving their loved ones."
- Yours Retirement Services in partnership with Key Retirement offers an equity release service. Find out more here or call free on 0808 156 9010
- Use our free online calculator to see how much you could release